Question
The ledger of Chacha Vatija Unity Limited contained the following account balances at December 31, 2019, the end of company's fiscal year. Accounts Balances ($)
The ledger of Chacha Vatija Unity Limited contained the following account balances at December 31, 2019, the end of company's fiscal year.
Accounts Balances ($)
Cash 2230
Accounts Receivable 22200
Inventory 36100
Supplies 1080
Prepaid Rent 9430
Machinery 23000
Accumulated Depreciation-Machinery 9940
Equipment 63000
Accumulated Depreciation-Equipment 7580
Land 74000
Accounts Payable 9720
15% Debenture 31000
Common Stock ($ 2.5 par value) 41000
Additional Paid in Capital-Common Stock 41900
Retained Earnings 59100
Sales 542100
Sales Returns and Allowances 8000
Sales Discount 3600
Salaries Expense 75800
Cost of Goods Sold 385800
Loss from employee strike 4510
Wages Expense 7730
Rent Expense 12460
Interest Expense 3400
Advertising Expense 11000
Rent Revenue 3600
Other Administrative Expense 2600
Additional Data:
1. The accountant has forgotten to record the issue of 1,000 common shares @ $4.5 each on December 21, 2019.
2. 10% cash Dividend has been declared on the common stock.
3. The company is under 30% tax bracket.
4. Machinery is being depreciated @20% under straight line method, Equipment is being depreciated @30% under reducing balance method.
5. Supplies actually on hand is $ 200.
6. Physical check on December 31, 2019 reveals that inventory actually on hand is $ 35,200.
From the above information, prepare the followings:
(a) Multistep income statement for the year ending December 31, 2019;
(b) Stockholder_s Equity Statement as at December 31, 2019; and
(c) Classified Balance Sheet as at December 31, 2019.
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